Insurance Exemption for 2-lot subdivisions
22 March 2019
Certain insurance exemptions exist for 2-lot subdivisions under section 7 of the Owners Corporations Act 2006.
- Division 6 of Part 3 (sections 54 to 65) of the Act regulates insurance. Two lot subdivisions are exempt from compliance with:
- section 59 requirement to take out common property reinstatement and replacement insurance;
- section 60 requirement to take out common property public liability insurance;
- section 61 requirement for reinstatement and replacement insurance and public liability insurance for all lots if a building is located above or below common property, a reserve or a lot,
- section 62 permitting the lot owners to resolve to insure any additional insurable interest;
- section 65 requirements for prescribed owners corporations to obtain a valuation of all buildings that it is liable to insure, renew the valuation every five years etc.
- The various other compliance exemptions under the Act for 2-lot subdivisions include:
- section 18: special resolution required to bring legal proceedings.
- section 31: formal fee notice required
- section 32: formal final notice required.
- section 93: chairperson has a casting vote only if the voting is equal etc.
- section 94: a lot owner cannot vote if fees are unpaid
- section 95: What is a unanimous resolution? See above.
- section 96: What is a special resolution? See above.
- section 97: Interim special resolutions.
- The following Divisions are also exempt from compliance:
- Part 3:
- Division 2 Accounts and Audit
- Division 3 Maintenance Plan
- Division 4 Maintenance Fund
- Part 4
- Division 1 First Meeting of Owners Corporation
- Division 2 Annual General Meeting
- Division 3 Special General Meetings
- Division 4 Procedure at General Meetings
- Division 5 Ballots
- Part 9
- Division 1 Keeping of Records
- Division 2 Owners Corporation Register
- Part 10:
- Division 1 Complaints and Procedures